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As a Result of a 5% Stock Dividend

Question 90

Multiple Choice

As a result of a 5% stock dividend:


A) Total stockholders' equity decreases by 5%.
B) The par value per share decreases by 5%.
C) The number of shares owned by each stockholder increases by 5%,but total stockholders' equity does not change.
D) Both the number of shares outstanding and the total stockholders' equity increase by 5%.

Correct Answer:

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